Earnings Results: Gap reports a mixed quarter, and stock wavers

by | Aug 24, 2023 | Stock Market

Gap Inc. late Thursday reported mixed second-quarter results, with sales that were slightly below Wall Street expectations and guidance that was also weaker, but the stock ticked higher after wavering between gains and losses earlier. Gap
is seeing “encouraging signs of progress” as it streamlines its business to focus on growth, Chief Executive Richard Dickson said.

Dickson, a former Mattel Inc.
executive, took the Gap reins in July. “Clothing is a rational need while fashion is an emotional one. Our brands will balance both. Going forward, I’m confident that we have the scale, talent and determination to spark huge defining trends again,” he said in a call following results. Gap stock lost some steam as the call progressed. Restructuring is difficult, but Gap will do it “differently, with a clear focus on brand revitalization,” he said. Gap earned $117 million in the quarter, or 32 cents a share, swinging from a loss of $49 million, or 13 cents a share, in the year-ago period. Adjusted for one-time items, the company earned 34 cents a share. Sales fell 8% to $3.55 billion, with headwinds from a stronger dollar and the negative impact of Gap China, the retailer said. Comparable …

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